Graph 18-2 -Refer to Graph 18-2. If the Price of Apples Falls

question 63

Multiple Choice

Graph 18-2

-Refer to Graph 18-2. If the price of apples falls, which of the following will happen? (i) the equilibrium quantity of labour will exceed L₁
(ii) the equilibrium wage paid to apple pickers will exceed W₁
(iii) the demand curve will shift down

• A) (i) and (ii)
• B) (i) and (iii)
• C) (ii) only
• D) (iii) only

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Definitions:

Proprietary Trading

When a firm trades stocks, bonds, currencies, commodities, derivatives, or other financial instruments with its own money, rather than its clients' money, for its own profit.

Hedge Funds

Investment funds that use various strategies to earn active returns for their investors, often employing leverage and derivatives.

Mortgage Market Meltdown

A significant downturn in the mortgage market, often resulting from a large number of loan defaults and the devaluation of mortgage-backed securities.

Securitization

The process of transforming illiquid assets into a tradable form by converting them into securities.